Managerial Accounting

TPSS 341

Faculty:

Semesters taught:

Goals:

This course in accounting and financial analysis covers methods used in developing and reporting information for decision making, and the use of that information. Its objectives are to:

a. students to develop useful record keeping skills for their businesses;

b. turn their records into accounting information useful in the management process;

c. understand the function of various accounting statements;

d. be able to effectively analyze their financial statements

e. develop skills in budgeting for their businesses;

f. add to the knowledge of managerial accounting techniques and concepts;

g. be familiar with some of the tax forms and publications necessary (helpful) in their businesses;

h. and to create ‘pro-forma’ financial statements for their businesses.

Skills and knowledge to be acquired:

Students will be able to evaluate financial management issues that agricultural producers face in managing their operations.
Students will have had hand-on experience in the use of standard financial management tools to make decisions in an agribusiness. Most of the examples on the applications of management science concepts and techniques introduced in lectures and utilized in assignments will be from scaled-down 'real world' case studies

Computer skills to be acquired:

Quick Books accounting program
Excel

Pre-requisites:

NREM 220 or ECON 130, or consent

Cross-Listed courses:

NREM 341

Text(s):

Terrell & Terrell, Survey of Accounting; Pearson Prentice-Hall, 2005

Your reading of the textual material is to be done PRIOR TO class. The lectures are intended to supplement and complement yourreading. They are not designed to be used in place of that reading. The lectures are conceived to answer questions that derive from your reading, not cause questions about what is being covered.

Films and videos:

None

Guest Speakers:

Speakers from the banks, State loan program and the Farm credit system will give guest lectures.

Field Trips:

None

Course organization:

The topics covered include:

Financial managerial goals

Accounting and information flows

Financial statements

Financial analysis and control

Financial planning and feasibility analysis

Capital structure, leverage and risk

Liquidity and credit

Risk management

Capital budgeting

Costs of financial capital

Financial markets in agriculture

Class

meeting

Reading

TopicsCovered

1

Syllabus

Introductions,basics

2

Chapter1

Typesofbusinessactivities

3

Chapter2

Balancesheet&IncomeStatement

4

Chapter2

CashFlows&EquityStatements

5

Chapter3

BasicsofBusinessFormation

6

Chapter3

Finerpoints-BusinessFormation

7

Chapter4

CostsandCostbehavior

8

Chapter4

Cost–Volume–ProfitAnalysis

9

C-V-Pproblems

10

Chapter10

TheBudgetingProcess–beginning

11

Chapter10

Developingthepartsofabudget

12

Chapter10

Developingaflexiblebudget

13

Chapter10

Usingthebudgetforplanningandcontrol

14

Catch-up Review

15

Midterm#1

CH1-2-3-4-5-10

TurninTake-HomeEXAM

16

Exam

Reviewexamresults

17

Chapter8

TrendAnalysis&Common-sizedFinancialStatements

18

Chapter8

RatioAnalysis: Profitability–OperatingEfficiency

19

Chapter8

RatioAnalysis:Liquidity–Solvency

20

Chapter8

RatioAnalysis:Liquidity–Solvency

Research

Workingon/Developingyour ResearchProject

21

Research

Workingon/Developingyour ResearchProject

Chapter9

RelevantCosts:Makevs.Outsource–Add/Closedivision

22

Chapter9

RelevantCosts:ReplaceEquipment–SpecialOrders

23

CH10Appendix

AnalyzingVariances-Materials-Labor-VOH-FOH

24

AnalyzingVariances-Materials-Labor-VOH-FOH

25

TurninResearchProject

ThanksgivingHoliday

26

ResearchProject

Shareresultsfromresearchprojects

26

CH11Appendix

TimeValueofMoney

27

Chapter11

CapitalBudgeting

28

Chapter11

CapitalBudgeting

29

Review-Catch-up

Grading:

Your grades will be computed on a 400 point scale. The weighting of that scale is:

Various Assignments 120

Company Analysis 80

Mid-term Exam 80

Final 80

Attendance & Participation 40

TOTAL AVAILABLE POINTS400

Your grades will be determined on a relative basis. Those with the highest point totals will earn the "A's", those with relatively lower ranges of scores will earn relatively lower grades. Over the last several years, "A”s have been earned in the 360 points range, or 90% of the possible points, "B"s 320 or 80%, "C"s 280 or 70%. These are intended to be guidelines for you, not absolute limitations. I reserve the right to change this grading curve according to the class performance. However, if a change does occur, the required points for a letter grade will never EXCEED the distribution above. You will note that there are points for attendance and participation. Any student who misses four (4) or more class sessions will receive an “F” for the course; unless there is incident specific communication with the instructor prior to the absence.

Other:

ASSIGNMENTS:

After coverage of each chapter, you will be given an assignment to complete. Each assignment has a technical (accounting/financial) portion, and an application part. You need to work through the technical (accounting) portion to develop the data for your application (managerial) analysis. These analyses must be prepared using computer technology.

Company Analysis: Each student will prepare a comparative analysis of a publically traded company and a close competitor using horizontal and vertical analyses, and liquidity, profitability, and solvency ratios. This research and analysis paper is valued at 20% of your grade. The requirements for this paper will be made available October 12th, and discussed in detail during the class session that day, and further developed in lectures that follow.

EXAMINATIONS: Your exams will have two parts. The in-class part of the examinations will have multiple choice formatted questions on the latest materials covered; the take-home portion will have longer problems. Both Accounting and Financial Analysis are definitely cumulative knowledge areas.